By Ogden                                              S.B. No. 1769
         77R2982 SMJ-D                           
                                A BILL TO BE ENTITLED
 1-1                                   AN ACT
 1-2     relating to certain contributions by members of the Teacher
 1-3     Retirement System of Texas.
 1-4           BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
 1-5           SECTION 1. Section 825.402, Government Code, is amended to
 1-6     read as follows:
 1-7           Sec. 825.402.  RATE OF MEMBER CONTRIBUTIONS. The rate of
 1-8     contributions for each member of the retirement system is:
 1-9                 (1)  five percent of the member's annual compensation
1-10     or $180, whichever is less, for service rendered after August 31,
1-11     1937, and before September 1, 1957;
1-12                 (2)  six percent of the first $8,400 of the member's
1-13     annual compensation for service rendered after August 31, 1957, and
1-14     before September 1, 1969;
1-15                 (3)  six percent of the member's annual compensation
1-16     for service rendered after August 31, 1969, and before the first
1-17     day of the 1977-78 school year;
1-18                 (4)  6.65 percent of the member's annual compensation
1-19     for service rendered after the last day of the period described by
1-20     Subdivision (3) and before September 1, 1985; [and]
1-21                 (5)  6.4 percent of the member's annual compensation
1-22     for service rendered after August 31, 1985 and before September 1,
1-23     2001; and
1-24                 (6)  six percent of the member's annual compensation
 2-1     for service rendered after August 31, 2001.
 2-2           SECTION 2. Section 825.403(a), Government Code, is amended to
 2-3     read as follows:
 2-4           (a)  Each payroll period, each employer shall deduct from the
 2-5     compensation of each member employed by the employer an amount
 2-6     equal to 6.0 [6.4] percent of the member's compensation for that
 2-7     period.
 2-8           SECTION 3. Section 16(a), Article 3.50-4, Insurance Code, is
 2-9     amended to read as follows:
2-10           (a)  For the state fiscal year beginning September 1, 1985,
2-11     and for each subsequent state fiscal year, each active employee, as
2-12     a condition of employment, shall contribute to the fund an amount
2-13     equal to .65 [.25] percent of the employee's salary.  Each month
2-14     the employer of an active employee shall deduct the contributions
2-15     from the employee's salary and shall remit the contributions to the
2-16     trustee as provided by any procedures that the trustee may require.
2-17     In lieu of deducting the contributions from salaries, an employer
2-18     may assume and pay the total contributions due from its active
2-19     employees for any month.
2-20           SECTION 4. This Act takes effect September 1, 2001, and
2-21     applies to the first full pay period for a member of the Teacher
2-22     Retirement System of Texas that begins on or after that date.